What's Taxable Under the HST and What's Not?

What's Taxable Under the HST and What's Not?

Answering your questions about Ontario's Harmonized Sales Tax

Here are examples of common products and services and how they will be affected by the HST.

CLOTHING AND FOOTWEAR:

Adult Clothing Children's Clothing Shoe Repair Service Children's Footwear

Tailoring Services Dry Cleaning Service

GST-taxable before July 1, 2010

5% 5% 5% 5%

5% 5%

PST-taxable before July 1, 2010

8% No PST 8% No PST if $30 or less

8% No PST

Is there a change to the amount of tax payable

under the HST? No (remains 13%) No (remains 5%) No (remains 13%) No for footwear up to size 6 (remains 5%) No (remains 13%) Yes (changes to 13%)

FOOD AND BEVERAGES:

Did You Know? 6.6 million families and individuals in Ontario will receive sales tax transition benefits in three instalments over one year beginning in June 2010.

Basic Groceries (e.g., Dairy, Meat, Vegetables, Canned Goods)

Snack Foods (e.g., Chips, Pop)

Qualifying Prepared Food and Beverages Sold for $4.00 or Less

Restaurant Meals for More than $4.00

Alcoholic Beverages

GST-taxable before July 1, 2010

No GST

5% 5%

5%

5%

PST-taxable before July 1, 2010

No PST

8% No PST

8%

10-12%

Is there a change to the amount of tax payable

under the HST? No HST

No (remains 13%) No (remains 5%)

No (remains 13%)

HST 13%1

1 Although sales tax on alcohol is decreasing, other alcohol fees and taxes are changing to continue to support social responsibility.

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HOME SERVICES:

Did You Know? 93 per cent of all homes sold in Ontario, on average, will not be subject to an additional tax amount under HST.

GST-taxable before July 1, 2010

Cable Television Services

Cell Phone Services

Municipal Water

Home Maintenance Equipment

Home Phone Services

Home Service Calls to Repair Free-Standing Appliances such as Stoves, Refrigerators, Washers, Dryers, and Televisions

Home Insurance

Electricity and Heating (e.g., Natural Gas/Oil for Home)

Internet Access Services

Home Service Calls by Electrician/ Plumber/Carpenter to Maintain or Repair Furnace, Leaky Faucets, Bathtub, Toilet, Electrical Wiring, etc.

Landscaping, Lawn-Care and Private Snow Removal

5% 5% No GST 5% 5% 5%

No GST 5% 5% 5%

5%

PST-taxable before July 1, 2010

8% 8% No PST 8% 8% 8%

Is there a change to the amount of tax payable

under the HST? No (remains 13%) No (remains 13%) No HST No (remains 13%) No (remains 13%) No (remains 13%)

8% No PST

No PST No PST

No (remains 8%) Yes (changes to 13%)

Yes (changes to 13%) Yes (changes to 13%)

No PST

Yes (changes to 13%)

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ACCOMMODATION, TRAVEL AND PASSENGER TRANSPORTATION SERVICES:

GST-taxable before July 1, 2010

Luggage, Briefcases, Bags, etc.

Municipal Public Transit

GO Transit

Air travel originating in Ontario and terminating in the U.S.2

Air travel originating in Ontario and terminating outside of Canada and the U.S.3

Rail, boat and bus travel originating in Ontario and terminating outside of Canada

Hotel Rooms

Taxis

Camp Sites

Domestic air, rail, boat and bus travel originating in Ontario

5% No GST No GST 5%

No GST

No GST

5% 5% 5% 5%

PST-taxable before July 1, 2010

8% No PST No PST No PST

No PST

Is there a change to the amount of tax payable

under the HST? No (remains 13%) No HST No HST No (remains 5%)

No HST

No PST

No HST

5% No PST No PST No PST

Yes (changes to 13%) Yes (changes to 13%) Yes (changes to 13%) Yes (changes to 13%)

2 Includes air travel terminating in the French islands of St. Pierre and Miquelon but does not include air travel terminating in Hawaii. 3 Includes air travel terminating in Hawaii but does not include air travel terminating in the French islands of St. Pierre and Miquelon.

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AROUND THE HOUSE:

Did You Know? The comprehensive tax package provides Ontarians with $11.8 billion in tax relief over three years.

GST-taxable before July 1, 2010

Cleaning Products

5%

Laundry Detergent, Fabric Softeners 5%

Household Furniture

5%

Refrigerators and Freezers

5%

Pre-Packaged Computer Software 5%

Books (including Audio Books)

5%

Newspapers

5%

Office Supplies, Stationery

5%

Landscaping Materials

5%

including Sod, Seeds, Plants

Linens (e.g., Blankets, Towels,

5%

Sheets)

Tents, Sleeping Bags, Camping

5%

Supplies

Tools

5%

Patio Furniture

5%

Barbeques, Lawnmowers,

5%

Snowblowers, Sprinklers

Toys (e.g., Puzzles, Games, Action 5% Figures, Dolls, Playsets)

Outdoor Play Equipment

5%

(e.g., Swing Sets, Sandboxes,

Slides)

Craft Supplies

5%

Building Materials (e.g., Lumber,

5%

Concrete Mix)

Magazines Purchased at Retail

5%

Magazines Purchased by

5%

Subscription

Home Renovations

5%

PST-taxable before July 1, 2010

8% 8% 8% 8% 8% No PST No PST 8% 8%

8%

8%

8% 8% 8%

8%

8%

Is there a change to the amount of tax payable

under the HST? No (remains 13%) No (remains 13%) No (remains 13%) No (remains 13%) No (remains 13%) No (remains 5%) No (remains 5%) No (remains 13%) No (remains 13%)

No (remains 13%)

No (remains 13%)

No (remains 13%) No (remains 13%) No (remains 13%)

No (remains 13%)

No (remains 13%)

8% 8%

8% No PST

No PST

No (remains 13%) No (remains 13%)

No (remains 13%) Yes (changes to 13%)

Yes (changes to 13%)

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MOTORIZED VEHICLES:

Vehicle Parts Short-Term Auto Rentals Lease of a Vehicle Child Car Seats and Booster Seats Auto Insurance Labour Charges to Repair Vehicle Oil Change Tires Window Repair Purchase of Vehicle from Dealer Boats Snowmobiles Recreational Vehicles Private Resale of Car (including Registration) Gasoline/Diesel

GST-taxable before July 1, 2010

5% 5% 5% 5% No GST 5% 5% 5% 5% 5% 5% 5% 5% No GST

5%

PST-taxable before July 1, 2010

8% 8% 8% No PST No PST 8% 8% 8% 8% 8% 8% 8% 8% 8%

No PST

Is there a change to the amount of tax payable

under the HST? No (remains 13%) No (remains 13%) No (remains 13%) No (remains 5%) No HST No (remains 13%) No (remains 13%) No (remains 13%) No (remains 13%) No (remains 13%) No (remains 13%) No (remains 13%) No (remains 13%) Yes4 (changes to 13%)

Yes (changes to 13%)

4 HST does not apply; however, Ontario will maintain the PST on private transfers of used vehicles at a rate of 13 per cent to help ensure a level playing field between sales by dealerships and private sales.

HOME PURCHASES:

New Homes up to $400,000 New Homes over $400,000 Resale Homes Real Estate Commissions

GST-taxable before July 1, 2010

5% 5% No GST 5%

PST-taxable before July 1, 2010

No PST No PST No PST No PST

Is there a change to the amount of tax payable

under the HST? No change5 Yes5A

No HST Yes (changes to 13%)

5 The new housing rebate will be 75 per cent of the Ontario component of the HST, up to a maximum of $24,000. The rebate will ensure that buyers of homes priced up to $400,000 will, on average, pay no more tax than under the PST system. However, applicable PST on building supplies is embedded in the price of the home.

5A New homes purchased as primary residences, valued at $400,000 or more, will be eligible for the maximum new housing rebate of $24,000.

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HEALTH PRODUCTS AND SERVICES:

GST-taxable before July 1, 2010

Audiologist Services

No GST

Chiropractor Services

No GST

Physiotherapist Services

No GST

Pharmacist Dispensing Fees Over-the-Counter Medications Prescription Drugs Some Medical Devices (includes Walkers, Hearing Aids) Prescription Glasses/Contact Lenses Feminine Hygiene Products Adult Incontinence Products Diapers Cosmetics Hair Care Products (e.g., Shampoo, Conditioner, Styling Products) Dental Hygiene Products (e.g., Toothpaste, Toothbrushes) Massage Therapy Services

Vitamins

No GST 5% No GST No GST

No GST

5% No GST 5% 5% 5%

5%

5% 5%

PST-taxable before July 1, 2010

No PST

No PST

No PST

No PST 8% No PST No PST

No PST

No PST No PST No PST 8% 8%

8%

No PST No PST

Is there a change to the amount of tax payable

under the HST? No HST if offered by a practitioner of the service. No HST if offered by a practitioner of the service. No HST if offered by a practitioner of the service. No HST No (remains 13%) No HST No HST

No HST

No (remains 5%) No HST No (remains 5%) No (remains 13%) No (remains 13%)

No (remains 13%)

Yes (changes to 13%) Yes (changes to 13%)

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MEMBERSHIPS, ENTERTAINMENT AND SPORTS EQUIPMENT:

Admissions to Professional Sporting Events

Movie Tickets

GST-taxable before July 1, 2010

5%

5%

Music Lessons Skis and Snowboards Hockey Equipment Golf Clubs Green Fees for Golf Gym and Athletic Membership Fees Ballet, Karate, Trampoline, Hockey, Soccer Lessons, etc. Tickets for Live Theatre with Less than 3,200 Seats

No GST 5% 5% 5% 5% 5% 5%

5%

PST-taxable before July 1, 2010

10%

10%

No PST 8% 8% 8% No PST No PST No PST

No PST

Is there a change to the amount of tax payable

under the HST? Combined rate going down to 13% from current 15% Combined rate going down to 13% from current 15% No HST No (remains 13%) No (remains 13%) No (remains 13%) Yes (changes to 13%) Yes (changes to 13%) Yes6 (changes to 13%)

Yes7 (changes to 13%)

6 HST taxable, although some could be HST-exempt if provided by a public service body to children age 14 and under and underprivileged individuals with a disability.

7 HST taxable, although some could be exempt if maximum admission charged by a public service body is $1 or less, if the admissions are made in the course of the fundraising events where charitable receipts for income tax purposes may be issued, or admissions are to amateur performances.

LEASES AND RENTALS:

Condo Fees Residential Rents Hockey Rink and Hall Rental Fees

GST-taxable before July 1, 2010

No GST8 No GST 5%

PST-taxable before July 1, 2010

No PST8 No PST No PST

Is there a change to the amount of tax payable

under the HST? No HST8

No HST

Yes (changes to 13%)

8 Residential condo fees charged to residents are exempt; however, purchases by condominium corporations will be subject to HST, if applicable.

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ELECTRONICS:

TVs DVD and Blu-ray Players and Accessories MP3 Players Cell Phones, Smart Phones Cell Phone Service CDs, DVDs and Blu-ray discs Radios and Stereos Computers and Printers

GST-taxable before July 1, 2010

5% 5%

5% 5% 5% 5% 5% 5%

PST-taxable before July 1, 2010

8% 8%

8% 8% 8% 8% 8% 8%

Is there a change to the amount of tax payable

under the HST? No (remains 13%) No (remains 13%)

No (remains 13%) No (remains 13%) No (remains 13%) No (remains 13%) No (remains 13%) No (remains 13%)

PROFESSIONAL AND PERSONAL SERVICES:

Did You Know? Approximately 2.8 million families and individuals would benefit from the proposed Ontario Energy and Property Tax Credit, which would provide over $1.2 billion annually in energy and property tax relief.

GST-taxable before July 1, 2010

Child Care Services Legal Aid Coffins and Urns Purchased Separately from a Package of Funeral Services Fitness Trainer Hair Stylist/Barber Esthetician Services (e.g. Manicures, Pedicures, Facials) Funeral Services Legal Fees

No GST No GST 5%

5% 5% 5%

5% 5%

PST-taxable before July 1, 2010

No PST No PST 8%

Is there a change to the amount of tax payable

under the HST?

No HST

No HST

No (remains 13%)

No PST No PST No PST

No PST No PST

Yes (changes to 13%) Yes (changes to 13%) Yes (changes to 13%)

Yes (changes to 13%) Yes (changes to 13%)

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